Hong Kong’s pension fund authority is considering an electronic platform to cut costs and streamline administrative functions, the Hong Kong Economic Journal reported Thursday.
It will hire a consultant to look into a planned electronic portal, the report said, citing David Wong, chairman of the Mandatory Provident Fund Schemes Authority (MPF).
The study is expected to be completed in the fourth quarter.
Managing director Diana Chan said the e-portal is aimed at speeding up the so-called “employee choice” scheme which allows workers to switch their accounts from one service provider to another.
Wong, who was appointed MPF chairman in March, is planning two key initiatives — a core fund that automatically reduces investment risk as members approach retirement age, and eMPF which offers electronic account management services.
Chan said automation will improve administrative efficiency given that more than 90 percent of the work is paper-based.
Voluntary MPF contributions have grown fourfold to HK$3.7 billion (US$477.4 million) since 2005, accounting for 22 percent of the total.
The scheme requires employers and employees to contribute 5 percent of the latter’s monthly salary to the fund. Employees can voluntarily increase their contribution via a top-up mechanism.
Translation by Vey Wong
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